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The cheapest cars to insure in the UK

Find out the cheapest small cars to insure in 2023.

The SEAT Ibiza is one of our cheapest cars to insure in 2023.

The SEAT Ibiza is one of our cheapest cars to insure in 2023.

Buying a car is one of the biggest purchases you can make, but on top of the cost of the vehicle, there’s also additional expenses to consider such as the cost of fuel, vehicle tax and car insurance.

Car insurance is one of the biggest additional costs for drivers, especially as you have to renew it annually and you have to make sure that every driver is insured to drive or they could be breaking the law.

How is the cost of car insurance determined?

The cost of car insurance premium is based on a number of risk factors. These include your age, your occupation, your driving history, where you park your car, the make and model of your car and even the type of fuel the vehicle uses. If you add another family member onto your car insurance, this can change the cost of the premium, especially if they are a new driver as they are seen as a higher risk to insure.

Is there anything you can do to reduce the cost of your insurance?

There are a number of things that young drivers can do to reduce their car insurance premiums including getting a black box fitted or limiting your annual mileage. A black box tracks your driving behaviour, recording your speed, distance travelled, accelerating and braking habits and what times of the day you drive in order to build a picture of the driver to determine their risk. The more you drive, the more likely you are to have an accident so by agreeing to a low mileage, you will be seen as a lower risk.

Your insurance premium may reduce over time if you build up a no-claims bonus, which builds following each successive year without making a claim. The longer you drive without a claim, the larger the potential discount.

Does engine size affect insurance?

If you buy a more expensive or more powerful car, this will be deemed a higher risk and your premium may increase. If you want to find out more about how much it costs to insure your car, you can talk to Arnold Clark Insurance Services.

What are car insurance groups?

Insurance companies place all cars in a car insurance group with every car placed in one of 50 groups. Cars in group one are the cheapest to insure and cars in group 50 are the most expensive. In general, the cheapest cars to insure will be smaller, less expensive and lower performance but with good safety features. While cars in lower groups might not have all the latest tech, in 2023, even the most basic cars have a great minimum standard.

Finding a car that’s cheap to insure is something many buyers are looking for and we’re always happy to help our customers. Below you’ll find our pick of cars that are cheap to insure, perfect for new drivers.

What are the cheapest cars to insure?

Dacia Sandero

Dacia may have a reputation for being cheap and cheerful, but the Groupe Renault-owned manufacturer has come a long way in recent years. As well as offering great value for money, the Sandero has been redesigned from the ground up and looks rather stylish with its Y-shaped LED headlights. There are strong safety features too, including hill start assist and emergency brake assist. The interior looks smart with all the infotainment controls brought together in one handy interface alongside easy-to-use temperature controls, allowing you to set your perfect climate. If you’re looking for a cheap car to insure, then the Dacia Sandero is a great contender.

View Dacia Sandero deals

Kia Picanto

The Kia Picanto comes with five doors as standard and the entry-level model offers everything you could want in a car. With daytime running lights, USB and a driver-assistance pack, it’s got plenty of great tech as well. And the good thing is, from the Picanto 1, right up to the top-of-the-range GT-Line S, you can pick out the features that you think you’ll need and pick a price-point that suits you.

View Kia Picanto deals

SEAT Ibiza

While the SEAT Ibiza is ever popular with hot hatch fans, the less powerful models still deliver an excellent runabout with reasonable insurance premiums. SEAT is part of the Volkswagen Group so you know that you’ll be getting a car with a decent build quality, and you can often find an Ibiza at a better price than its German counterpart, the Volkswagen Polo. Whether you choose three doors or five, the Ibiza is a good all-rounder with decent boot space of 355 litres and can seat five people relatively comfortably. Basically, it’s perfect for city driving, the commute and with enough space to make it practical for everyday living.

View SEAT Ibiza deals

Hyundai i10

Hyundai has a reputation for reliability, which is probably one of the reasons why they’re cheap to insure. The i10 comes with a five-year unlimited mileage warranty as well. There are three trim-levels to choose from – SE Connect, Premium and N Line – and they all come with class-leading connectivity and a range of advanced safety features. And you get a roomy and modern cabin as well which feels remarkably spacious. Boot space is 252 litres which expands to 1,046 with the seats down.

View Hyundai i10 deals

Renault Clio

While the Renault Clio may have been around since the early 1990s, the current version combines chic styling and great technology to create what Renault call a ‘seductive supermini’. The Clio is designed for everyday driving but has plenty of great kit on board including the largest touchscreen in the segment putting all your controls and connectivity at your fingertips. And thanks to its affordable price and efficient engine, this car falls into the lower insurance groups.

View Renault Clio deals

Fiat 500

How many iconic cars are cheap to insure? The Fiat 500 may have been around for a long time now, but it has always retained its iconic silhouette. While there’s a new electric version on the market, the classic conventionally powered model remains popular. It’s a cute car, designed for the city and fun to drive. It's perfect for first-time buyers and for anyone who wants a stylish city car. It may only have a small boot at 185 litres but what it lacks in space, it makes up for in pure charisma.

View Fiat 500 deals


The MG3 is one of the best value hatchbacks on the market. These Chinese cars with a classic British badge may not be all that glamorous but they represent a sound investment if you’re working on a tight budget. Inside the roomy interior, you’ll find an 8-inch colour touchscreen, Apple CarPlay and Bluetooth connectivity. On top of that, you get a seven-year manufacturer warranty for a little added peace of mind.

View MG3 deals

Volkswagen up!

The only way is up!, especially if you’re looking for a small car from Volkswagen. If you’re looking for build quality in your small car, then the Volkswagen up! could be the answer. And while this truly is a city car, perfect for parking in those tight spaces, the boot is surprisingly large at 251 litres which is more than enough for a suitcase or even a folded buggy. The up! makes the most of its limited dashboard space with the maps + more dock which allows you to connect your device and use it as your navigation screen.

View Volkswagen up! deals

About the Author

Andrew Moir